Source: ARK Disrupt Issue 133: July 16, 2018. By @yassineARK

In a new strategic partnership with TokenPay, Litecoin Foundation has acquired a 9.9 percent stake in Germany’s WEG Bank. In what started as a friendly Twitter exchange between Litecoin creator Charlie Lee and TokenPay CEO Derek Capo, the two entities agreed to a deal that will grant Litecoin an equity stake in WEG bank in exchange for marketing and technology services for TokenPay.

Litecoin Foundation believes that banking partnerships will help legitimize blockchain networks. Working with a bank should circumvent the problems that cryptoasset-related projects and companies have had in attaining banking accounts.

From WEG’s perspective, this partnership could give TokenPay access not only to Litecoin’s users but also to its technical expertise. In a recent interview, Charlie Lee highlighted that Litecoin could integrate TokenPay with the Lightning Network and help it develop its decentralized exchange.

As ARK has pointed out, WEG Bank’s decision to sell equity to a crypto-related company could “arrest the downward spiral of German bank stocks. During tough times consumers and businesses are willing to think about doing things differently.” Providing consumers and merchants with an on-ramp for both fiat and cryptocurrencies, WEG could point the way for other German banks to transform their businesses.

View original article and other research here.


Disclosure
ARK’s statements are not an endorsement of any company or a recommendation to buy, sell or hold any security. For a list of all purchases and sales made by ARK for client accounts during the past year that could be considered by the SEC as recommendations, click here. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities in this list. For full disclosures, click here.

Leave a Reply

Your email address will not be published.

Fred Pye

Frederick T. Pye

CHAIRMAN, CHIEF EXECUTIVE OFFICER & DIRECTOR

Frederick T. Pye is the Chairman, Chief Executive Officer and Director of 3iQ Corp. He is also the Chairman and Director of 3iQ Digital Holdings Inc. Mr. Pye is recognized for creating and promoting creative and unique investment products for the investment industry.

Mr. Pye has managed private client portfolios with Landry Investment Management and various other investment dealers. Prior to this Mr. Pye was Founder, President & Chief Executive Officer of Argentum Management and Research Corporation, a company dedicated to managing and distributing quantitative investment portfolios including the first long-short mutual fund in Canada.

He was also Senior Vice-President and National Sales Manager of Fidelity Investments Canada and an integral part of the team that saw assets rise from $80 million to over $7.5 billion in assets under management during his tenure. He also held various positions with Guardian Trust Company, which listed the first Gold, Silver and Platinum Certificates on the Montreal Exchange.

Mr. Pye obtained a Masters in Business Administration from Concordia University.